Federal Reserve Chair Jerome Powell and other officials have strongly indicated that interest rate cuts are imminent, likely starting in September with a quarter-percentage point reduction. Powell emphasized that the decision will be data-driven, considering both inflation and labor market conditions, which have shown significant improvement. San Francisco Fed President Mary Daly echoed this sentiment, stating it’s 'hard to imagine' not cutting rates next month. Experts warn that rapid cuts could negatively impact markets, advocating for a gradual reduction approach. The potential cuts aim to balance inflation control and full employment while providing relief to borrowers and investors. The anticipated rate cuts have been factored into market expectations, potentially limiting their immediate impact on both U.S. and global markets.